- The largest danger for BRC-20 DEX shall be compliance danger.
- The CEO of OKX says the chance shall be bordered by DEX, accepting deposits with none KYC or AML controls.
- The BRC-20 staff acknowledged the necessity to implement KYC as a software to advertise belief.
The CEO of OKX, with the Twitter deal with Star, stated the most important danger for the BRC-20 Decentralized Alternate (DEX) shall be compliance danger. In keeping with Star, this danger shall be restricted to DEX accepting deposits with none KYC or AML controls.
Star observed that the BRC-20 DEX doesn’t help sensible contracts. As a substitute, the protocol requires customers to deposit cryptocurrency tokens right into a centralized pockets earlier than making an change. After that, it sends the tokens to customers’ wallets.
The BRC-20 staff took to their official Twitter deal with to credit score Star for his commentary. The group defined that its working mannequin is similar as that of centralized exchanges. It additionally acknowledged the necessity to implement KYC to advertise belief. The staff tweeted;
“Actually, Bitcoin doesn’t help sensible contracts. We use the identical technique utilized by the central change to course of withdrawals and deposits by means of the API that manages the new pockets. KYC is definitely one thing we should always do to advertise belief.
BRC-20 is an acronym for Bitcoin Request for Remark 20. It’s a newly launched token customary on the Bitcoin community, powered by Bitcoin’s Taproot replace. A lately launched protocol lets you file queues. Customers contemplate BRC-20 to be the Bitcoin model of the Ethereum community’s ERC-20 token customary.
Though BRC-20 tokens use ordinal digits, not all ordinals are BRC-20. Thus, the variety of BRC-20 tokens at the moment in existence is small in comparison with the tens of millions of ordinal digits current within the Bitcoin community.
Earlier in the present day the BRC-20 staff introduced that customers can now have AirDrop eligibility with OG wallets. In keeping with the staff, that is the one pockets class at the moment registered within the protocol. BRC-20 has but to enroll ALPHA and Zealy members.
The staff additionally requested that customers present solely pockets addresses that had been used to make purchases by means of IDO.
